News Releases

Jan 31, 2011

Vancouver, British Columbia. Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to provide an update on the drilling program, results received to date and the on-going activities for the Company's 100% owned Corcoesto Gold Project ("Corcoesto or the Project") in Galicia, Spain.

Notable results to date include Hole 10E10 from 164m to 181m which averaged 10.72 g/t Au over 17.0m. This intercept is the highest grade x width intercept intersected to date on the Corcoesto Gold Project. Drill hole 10E10 is a 100m step-out which intersected the Pozo de Ingles structure down dip from previous drilling. In the Cova Crea area drill holes 10E02 and 10E07 are each 100m step-outs from previous drilling intersected the down dip portion of the structure and returned respectively 1.91 g/t Au over 12.3m (200.9m to 213.2m) and 2.28 g/t Au over 17.1m (261.2m to 278.3m).

George Salamis, President and CEO, states "With one third of the resource definition drilling completed, I believe the step-out drilling confirms significant potential to increase the current gold resource. This recent step-out drilling clearly demonstrates that the Pozo de Ingles and Cova Crea gold-bearing structures remain open at depth; we are now drilling the down dip extensions of these zones and are excited to see further potential. In addition, in-fill drilling continues to demonstrate good continuity between sections of previously drilled gold mineralization, with the goal of converting more inferred resources to a measured and indicated category."

The drilling is being directed at high priority targets, specifically strike and dip extensions of open ended gold mineralization within the Pozo de Ingles, Peton de Lobo, and Cova Crea structures as well as others. The main focus of the step-out drilling are areas with the potential for wider widths and higher gold grades which have been shown to be related to flexures in the mineralized structures and controlled by a distinct plunge to the mineralization evident from previous drilling. For a detailed drill location map please view a Corcoesto Plan map on the Company's website at www.edge-water.com.

The current multi-rig 12,000m drilling program is designed to expand the existing gold resource and provide sufficient data for the completion of an updated resource estimate and subsequently, the commencement of a Preliminary Assessment (Scoping Study) in H1 2011 at the Corcoesto Gold Project. Work to date is progressing on budget and ahead of schedule. The Company plans to drill a further 1800m as part of Phase I of this program and there will then be a brief pause in the drilling in order to allow the Company to assimilate the outstanding Phase 1 assays. Phase II, consisting of the remaining 6000m will then commence and it is expected that Phase II will be completed by the end of H1, 2011.

Previous work on the Project has consisted of geological mapping, geophysical surveying, and soil and rock geochemistry including trenching and 42,326.2m of diamond and RC drilling in 436 holes. This work has resulted in the estimation of a NI 43-101 compliant resource at Corcoesto consisting of a Measured and Indicated resource of 5,657,000 tonnes grading 1.73 g/t Au containing 315,000 ozs gold at a 0.65 g/t Au cut-off and an Inferred resource of 16,542,000 tonnes grading 1.66 g/t Au containing 885,000 ozs gold -- see details in News Release dated September 21st 2010.

Highlights of Corcoesto Drilling Results include;

Drill Hole

Mineralized Zone

Intercept From

To

Length (Meters)

Au (Au g/t)

Hole 10E01

Peton de Lobo

25.10

30.05

4.95

1.60

and

169.90

190.35

20.45

0.48

and

200.00

229.15

29.15

0.36

and

246.20

269.60

23.40

0.60

Hole 10E02

Cova Crea

159.00

165.00

6.00

4.27

and

200.90

214.20

13.30

1.81

incl.

212.10

213.20

1.10

14.85

Hole 10E03

Cova Crea

155.00

167.50

12.50

0.75

Hole 10E04

Pozo De Ingles

345.00

371.00

26.00

0.79

incl.

362.00

371.00

9.00

1.24

Hole 10E05

Cova Crea

174.70

182.80

8.10

1.71

Hole 10E07

Cova Crea

261.20

304.60

43.40

1.51

incl.

277.30

278.30

1.00

14.95

and incl.

298.00

304.60

6.60

3.20

and incl.

302.60

303.60

1.00

14.10

Hole 10E09

Pozo De Ingles

0.00

8.60

8.60

1.29

Hole 10E10

Pozo De Ingles

164.00

181.00

17.00

10.72

incl.

171.20

172.30

1.10

148.50

and

237.30

254.80

17.50

0.79

Hole 10E11

Cova Crea

19.50

29.00

9.50

0.91

Notes:
1) All reported intercepts are core lengths and true widths are estimated at 80 per cent of core lengths
2) Weighted averages calculated using uncut assays.
3) See attached table for complete set of results.

Drilling began in October 2010 (see News Release dated October 20th 2010) and to date eleven holes totalling 4221.8m have been completed. Results have been received for nine holes, results for two holes are pending and three drill holes are in progress.

The Company is also progressing with all necessary reports and activities in support of the Corcoesto mine license and permitting in the three applicable administrations: Environmental Department of La Xunta de Galicia, Mines Department of La Xunta de Galicia and the Municipality of Cabana de Bergantiños.

Details of the Corcoesto Project are available in the technical report entitled "Technical Report on the Corcoesto Gold Project, Galicia, Spain" date August 4, 2010 authored by Alan C. Noble, PE. of Ore Reserves Engineering filed on SEDAR at www.sedar.com under Edgewater's profile.

Sample analyses have been conducted at independent commercial facilities. Sample preparation is completed by Chemex in Seville, Spain and sample analyses completed at Chemex Labs. All sample analyses was completed using industry standard geochemical and fire assay practices and included a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of standards, blanks and duplicate samples randomly into the sample stream. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.

Mr. Gregory Smith, P.Geo., the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained in this news release.

About Edgewater Exploration Ltd.

Edgewater is a mineral exploration company focused principally on acquisitions, advancement and development of precious metal properties. Edgewater is currently developing the Enchi Gold Project in Ghana, West Africa and the Corcoesto Gold Project in northwest Spain.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.